On November 27th, Joyful Group (NASDAQ: YY) released its Q3 2024 financial report. During the reporting period, Joyful Group achieved a revenue of 558.7 million yuan, unchanged year-on-year, with a net profit of 61.2 million US dollars under non GAAP accounting standards, compared to 81.2 million US dollars in the same period of 2023.
At present, Joyful Group is in a critical stage of transformation. On the one hand, it is reducing costs and increasing efficiency, improving the operational capabilities and efficiency of its existing business. On the other hand, Joyful Group is also adjusting its revenue structure to make revenue more diversified.
In the third quarter, the revenue of Joyful Group's live streaming business was 439.5 million yuan, compared to 495.8 million yuan in the same period of 2023. Joyful Group explained that this decline is mainly due to the decrease in BIGO's ARPPU (average revenue per paying user) and certain adjustments made to its audio live streaming products.
However, from an industry perspective, the competition for overseas live streaming products that Joyful is facing is also intensifying. At the same time, due to the impact of the economic environment, users' willingness to pay is also weakening. Therefore, the future revenue pressure of the live streaming business will be significant.
During the reporting period, the global average monthly active mobile users of Joyful Group was 272.4 million, compared to 276.8 million in the same period of 2023. The total number of paid users in the BIGO sector (including Bigo Live, Likee, and imo) was 1.62 million, a slight increase from 1.61 million in the same period of 2023. However, the ARPPU of the BIGO sector decreased by 8.6% year-on-year to $231.4.
In terms of operational strategy, Joyful Group has become more targeted, tilting its budget and operational resources towards core developed countries and high-quality users. In the third quarter, the revenue of Joyful Group in Developed International increased by 21.6% year-on-year.
In this context, the Joyful Group is also consciously cultivating other sources of income. In the third quarter, the other revenue of Joyful Group was 119.2 million yuan, a year-on-year increase of 67.2% and a month on month increase of 13.1%, accounting for 21.3% of the total revenue of the group, mainly driven by the growth of advertising revenue.
As of the close of the US stock market on November 26th, the stock price of Joyful Group was $35 per share, with a total market value of $2 billion. As of the end of the third quarter, the net cash reserve of Joyful Group was 3.3021 billion US dollars.
At present, Joyful Group is releasing confidence to the outside world through continuous stock repurchases. In the third quarter, Joyful Group repurchased 3.43 million ADS shares in the public market, with a total repurchase amount of 117.8 million US dollars. In the first three quarters of this year, Joyful Group repurchased a total of 7.31 million ADS shares, with a repurchase amount of 243.7 million US dollars.